Halliburton revenue misses on weak drilling in North America

Mon Oct 19, 2015 11:44am EDT
 
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By Sneha Banerjee and Kanika Sikka

(Reuters) - Halliburton Co (HAL.N: Quote), the world's No.2 oilfield services provider, reported a bigger-than-expected 36 percent drop in quarterly revenue, hurt by weak drilling and pricing in North America.

Halliburton and bigger rival Schlumberger Ltd's (SLB.N: Quote) disappointing results highlight the struggles of the oil and gas industry, which is seeing little hope of a rebound in crude oil prices

The outlook for the battered industry continues to look gloomy even as Venezuela, an OPEC partner, plans to set a price band of $70 per barrel to stabilize the oil market.

Analysts have said the plan would be doomed from the start as Saudi Arabia, the group's de facto leader, has so far shown zero interest in returning to a strategy of supporting prices.

Brent oil LCOc1 was down 3.1 percent at $48.87 per barrel on Monday.

Halliburton further cut its 2015 capital budget by $200 million to $2.4 billion and said it had reduced global headcount by 21 percent since the beginning of the year.

The company also said fourth-quarter revenue and margins were likely to be flat to modestly low compared with the prior quarter.

"In North America, the prospects of reduced borrowing capacity for operators in a prolonged holiday season make the fourth quarter challenging and difficult to predict," Halliburton's acting CFO Christian Garcia, said.   Continued...

 
Various Halliburton equipment being stored at the equipment yard in Alvarado, Texas June 2, 2015.  REUTERS/Cooper Neill